Mexico inks pact with U.S. to crack down on tax cheats

MEXICO CITY, Nov 20 (Reuters) - Mexico’s finance ministry said on Tuesday it has approved an agreement with the U.S. Treasury Department that aims to help stamp out tax evasion.

The agreement took two years to negotiate and was signed by representatives from both governments in Washington on Monday, according to a statement released by the finance ministry.

“Both parties agreed to substantially improve the mechanisms for the exchange of banking and financial information to verify (taxpayer) compliance,” the statement said.

The ministry did not provide details on the agreement’s provisions.

About $50 billion a year is siphoned illegally out of Mexico due largely to tax evasion and trade manipulation, according to a report published earlier this year by the Washington-based anti-corruption advocacy group Global Financial Integrity.

Before becoming Mexico’s central bank governor, then-finance minister Agustin Carstens asked the United States to share more information to allow Mexico to crack down on tax evasion by U.S. companies.